Latin American silver

[from Eduardo Galeano's Open Veins of Latin America: Five Centuries of the Pillage of a Continent, tr. Cedric Belfrage, Monthly Review, 1973]

Between 1545 and 1558 the prolific silver mines of Potosí, in what is now Bolivia, and of Zacatecas and Guanajuato in Mexico, were discovered, and the mercury amalgam process, which made possible the exploitation of the lowest-grade silver, began to be used. The "silver rush" quickly eclipsed gold mining. In the mid-seventeenth century silver constituted more than 99 percent of mineral exports from Spanish America. Latin America was a huge mine, with Potosí as its chief center. Some excessively enthusiastic Bolivian writers insist that in three centuries Spain got enough metal from Potosí to make a silver bridge from the tip of the Cerro [Rico – the rich hill] to the door of the royal palace across the ocean. This is certainly fanciful, but even the reality stretches one's imagination to the limit: the flow of silver achieved gigantic dimensions. The large-scale clandestine export of Latin American silver as contraband to the Philippines, to China, and to Spain itself is not taken into account by Earl Hamilton, who nevertheless cites, in his well-known work on the subject, astounding figures based on data from the Casa de Contratación in Seville. Between 1503 and 1660, 185,000 kilograms of gold and 16,000,000 of silver arrived at the Spanish port of Sanlúcar de Barrameda. Silver shipped to Spain in little more than a century and a half exceed three times the total European reserves – and it must be remembered that these official figures are not complete.

The metals taken from the new colonial dominions not only stimulated Europe's economic development; one may say that they made it possible. Even the effect of the Persian treasure seized and poured into the Hellenic world by Alexander the Great cannot be compared with Latin America's formidable contribution to the progress of other regions. Not, however, to that of Spain, although Spain owned the sources of Latin American silver. As it used to be said in the seventeenth century, "Spain is like a mouth that receives the food, chews it, and passes it on to the other organs, retaining no more than a fleeting taste of the particles that happen to stick in its teeth." The Spaniards owned the cow, but others drank the milk. The kingdom's creditors, mostly foreigners, systematically emptied the "Green Strongroom" of Seville's Casa de Contratación, which was supposed to guard, under three keys in three different hands, the treasure flowing from Latin America.

The Crown was mortgaged. It owed nearly all of the silver shipments, before they arrived, to German, Genoese, Flemish, and Spanish bankers.